• History of trade union in India

In India, trade unions have developed into an important platform for

putting up with the demands of workers. They have also turned into
one of the most influential pressure groups, which is an aggregate
seeking to influence the government in framing legislation in favour
of workers without aspiring to become part of the government. As
an organised institution, trade unionism took its concrete shape after
the end of World War 1. The trade unions in India are essentially the
product of modern large-scale industrialization and did not grow out
of any existing institutions in society. The need for an organised
trade union was first realised in 1875
The setting up of textile and mill industries at the beginning of the
19th century in the presidency towns of Bombay, Madras, and
Calcutta gave impetus to the formation of industrial workforce
associations in India. The Bombay Mill-Hands Association, founded
by N.M. Lokhande in 1890, was the first labour association in India.
The following years saw the rise and growth of several other labour
associations and unions in India, like the Madras Labour Union,
which was the first properly registered trade union founded by B.P.
Wadia in the year 1918. In the year 1920, the country saw the
growth of the Ahmedabad Textile Labourer’s Association in Gujarat,
which turned into a union under the guidance of Mahatma Gandhi
and was considered to be one of the strongest unions in the country
at that time because of the unique method of arbitration and
conciliation it had devised to settle the grievances of the workers
with the employers. Since the union followed the ideals of truth and
nonviolence laid down by Mahatma Gandhi, it was able to secure
justice for the workers in a peaceful manner without harming the
harmony in society. In the same year, the first trade union
federation, the All India Trade Union Congress (AITUC), saw the light
of day. It was formed after the observations made by the
International Labour Organisation which highlighted the influence of
politics on trade unions and associations and how the same is
detrimental to any The importance of the formation of an organised
trade union was realised by nationalist leaders like Mahatma Gandhi,
who, to improve the employer and worker relationship, introduced
the concept of trusteeship, which envisaged the cooperation of the
workers and employers.
Many commissions also emphasised the formation of trade unions in
India for eg. The Royal Commission on labour or Whitley commission
on labour which was set up in the year 1929-30 recommended that
the problems created by modern industrialization in India are similar
to the problems it created elsewhere in the world and the only
solution left is the formation of strong trade unions to alleviate the
labours from their miserable condition
Thus the T.U act came into force on 1927.

• Development of Trade Union Law in India

Labour legislation in India has a key impact on the development of
industrial relations. The establishment of social justice has been the
principle of all labour legislation in India. The establishment of the
International Labour Organisation to uplift the condition of labour all
over the world gave further impetus to the need for well-framed
labour legislation in the country. Several other internal factors like
the Swaraj movement of 1921-24, the Royal Commission on Labour
also paved the way for various labour laws and also encouraged the
framers of the constitution to incorporate such laws in the
constitution which will benefit the labourers. Under the Constitution
of India, labour is the subject of the concurrent list and both the
centre and the state can make laws related to the subject. The
different labour laws in the country are as follows:
The Apprentices Act, 1961: The object of the Act was the promotion
of new manpower at skills and the improvement and refinement of
old skills through practical and theoretical training.
The Contract Labour (Regulation and Abolition) Act, 1970: The object
of the Act was the regulation of employment of contract labour
along with its abolition in certain circumstances.
The Employees’ Provident Funds and Misc. Provision Act, 1952: The
Act Provisions of the Trade Unions Act, 1926regulated the payment
of wages to the employees and also guaranteed them social security.
The Factories Act, 1948: The Act aimed at ensuring the health of the
workers who were engaged in certain specified employments.
The Minimum wages Act, 1948: The Act aimed at fixing minimum
rates of wages in certain occupations.
The Trade Union Act, 1926: The Act provided for the registration of
trade unions and defined the laws relating to registered trade
unions. exploitation. ability to prosper.

• Role of trade unions

The very purpose of unions in the labour market is to voice the issues
faced by the workers in their employment, hence the role played by
trade unions is critical. This is called collective bargaining; it is the
process by which the employees/workers put forth their issues
before the management or the employer. This is usually done
through the unions by placing the charter of demands before the
employers. The issues are then negotiated for and an agreement is
reached which then becomes binding on the employer as well as all
the workers.
Some of the functions they perform and the matters that are
negotiated upon most often are:
• Securing better wages and benefits to workers,
• Improving their bargaining power in order to create a level
playing field for the workers,
• Supporting workers in disputes with the management through
negotiations and strikes,
• Securing better working conditions for workers,
• Availing of better wages, compensation packages and social
security benefits,
• Regularisation of employment.
• Right to form Trade union
The critical role played by the unions is backed by several prominent
legislations; there are 3 major laws that govern the functioning of
trade unions in India. The legislation and the rights bestowed upon
the unions under the various provisions are explained below:
1. The Constitution of India
The essence of unionism and bargaining is laid down in Article
19(1) of the Constitution of India which provides to all its
citizens the fundamental right of freedom of speech. Clause (c)
of Article 19(1) includes the right to form associations or
unions. The Supreme Court has extended the meaning of this
right to also include the right of the members to conduct
meetings and the right to discuss their problems and put-forth
their views in the case of All India Bank Employees vs National
Industrial Tribunal.
2. The Trade Unions Act, 1926
The Trade Unions Act, 1926 (the “TU Act”) regulates the
constitution and governance of trade unions. Section 2(h) of
the Act defines the term trade unions under to mean any
combination which is formed for the purpose of regulating the
relations between
Workmen and employers
Workmen and workmen
Employers and employers or
For imposing restrictive conditions on the conduct of any
business or trade
• Provisions of the Trade Unions Act, 1926
• Definition clause
Section 2(h) lays down the definition of trade unions. It states
the following:
Trade Union means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the
relations between workmen and employers or between
workmen and workmen, or between employers and employers,
or for imposing restrictive conditions on the conduct of any
trade or business, and includes any federation of two or more
Trade Unions:
Provided that this Act shall not affect –

(i) Any agreement between partners as to their own

business;

(ii) Any agreement between an employer and those

employed by him as to such employment; or

(iii) Any agreement in consideration of the sale of the good-

will of a business or of instruction in any profession, trade
or handicraft.

• The components of a trade union:

There must be a combination of employers and workers in a
union;
The business trade is necessary, and
The primary goal of the union must be to control employer-
employee interactions and establish limitations on how any
trade or company may be conducted.
Since it includes both employers’ unions and workers’ unions,
the definition of a trade union under Section 2(h) is excessively
broad.

It was held in National Organisation of Bank Workers’

Federation of Trade Unions v. Union of India (1993) that a
federation is not a trade union in accordance with Section 2(h)
of the Trade Unions Act of 1926 if it is not a registered
organisation under that Act. Any federation made up of two or
more unions is included in the definition. The appellant lacked
the authority to initiate or make any demands for and on
behalf of the employees because it is not a registered
organisation.
• Section 3 : appointment of registrars
Section 3 of the Act empowers the appropriate government to
appoint a person as the registrar of a trade union. The
appropriate government can also appoint as many additional
and deputy registrars in a trade union as it deems fit for
carrying on the purposes of the Act.

The aforementioned actions must be taken in order to exercise

and carry out the Registrar’s legal obligations under this Act,
including any specific powers and functions that the Registrar
may, by order, specify, as well as to specify the local boundaries
within which any additional or deputy Registrar may exercise
and carry out those obligations.
• Section 4 : mode of registration
Section 4 of the Act provides for the mode of registration of the
trade union. According to the Section, any seven or more than
seven members of a trade union may by application apply for
the registration of the trade union subject to the following two
conditions:
At Least 7 members should be employed in the establishment
on the date of the making of the application.
At Least 10% or a hundred members whichever is less, are
employed in the establishment and should be a part of it on the
date of making the application.

• Section 5 : application of registration

According to Section 5 of the Act, every application for a trade
union’s registration must be presented in writing to the
Registrar and include a copy of the union’s rules as well as a
statement of the information listed below:
Firstly, the members submitting must mention their names,
occupations, and addresses;
Secondly, the name of the Trade Union and its headquarters’
address must also be included; and
Finally, the titles, names, ages, addresses, and occupations of
the Trade Union’s office holders must also be included.
A trade union’s executive must be organised in conformity with
the Act’s requirements before it may be registered.

• Section 6 : provisions to be contained in the rules of a

trade union
Section 6 of the Act enlists the provisions which should be
contained in the rules of trade union and it provides that no
trade union shall be recognized unless it has established an
executive committee in accordance with the provisions of the
Act and its rules, specifies the following matters, namely:
• Name of the trade union;
• The object of the establishment of the trade union;
 • Purposes for which the funds with the union shall be
directed;
• A list specifying the members of the union shall be
maintained. The list shall be inspected by office bearers
and members of the trade union;
• The inclusion of ordinary members who shall be the ones
actually engaged or employed in an industry with which
the trade union is connected;
• The conditions which entitle the members to any benefit
assured by the rules and also the conditions under which
any fine or forfeiture may be imposed on the members;
• The procedure by which the rules can be amended, varied
or rescinded;
• The manner within which the members of the manager
and also the alternative workplace bearers of the labour
union shall be elective and removed;
• The safe custody of the funds of the labour union, an
annual audit, in such manner, as may be prescribed, of
the accounts thereof, and adequate facilities for the
inspection of the account books by the workplace bearers
and members of the labour union, and;
• The manner within which the labour union could also be
dissolved.
The Supreme Court ruled in the case of M. T. Chandrasenan v.
Sukumaran (1974) that a member cannot be regarded as a
trade union member if the subscription fee is not paid.
However, subscriptions cannot be rejected on the basis of a
reason that prevents membership.

The Supreme Court of India ruled in the 2004 case of Bokajan

Cement Corporation Employees Union v. Cement Corporation
 of India that membership in the union did not end immediately
upon loss of employment.

• Section 7: Power to call for further particulars and require

alteration of the name
Section 7 of the Act confers upon the registrar the power to call
for information in order to satisfy himself that any application
made by the trade union is in compliance with Sections 5 and 6
of the Act. In matters where the discrepancy is found, the
registrar reserves the right to reject the application unless such
information is provided by the union.
This Section also confers power to the registrar to direct the
trade union to alter its name or change the name if the
registrar finds the name of such union to be identical to the
name of any other trade union or if it finds its name to so
nearly resemble the name of any existing trade union, it may be
likely to deceive the public or members of either of the trade
unions.

The Bombay High Court in the case of All India Trade Union
Congress v. Deputy Registrar of Trade Unions (2005) set aside a
request to register a trade union with a name that already
existed, claiming it to be expressly contrary to the language in
Section 7(2), leading to the cancellation of registration. It
further observed that the very purpose behind Section 7 is to
avoid misleading the general public or trade union members
into thinking that the union seeking registration under the
name for which registration is requested is somehow
associated with the union already registered.
• Section 8 : registration
According to Section 8 of the Act, if the registrar has fully satisfied
himself that a union has complied with all the necessary provisions of
the Act, he may register such a union by recording all its particulars
in a manner specified by the Act.
Each registered trade union should be a body corporate, which
makes it a legal entity with perpetual succession. It shall have a
common seal, the ability to buy, possess, and enter into contracts
with both movable and immovable property, as well as the ability to
sue and be sued using that name.
The Supreme Court ruled in the 1935 case of the Re-Indian Steam
Navigation Workers Union that a Registrar just needs to check that
all the technical conditions are being met, not whether it could be
deemed illegal.
In the case of ACC Rajanka Limestone Quarries Worker’s Union vs
Registrar of Trade Unions, AIR 1958, it was held that if the registrar
does not register the trade union within 3 months of application, an
appeal can be made to the High Court under art 226.
• Section 9 : certificate of registration
According to Section 9 of the Act, the registrar shall issue a
registration certificate to any trade union which has been registered
under the provisions of Section 8 of the Act, and such a certificate
shall act as conclusive proof of the registration of the trade union.
• Section 9A : minimum requirement related to the
membership of a trade union
Section 9A of the Act lays down the minimum number of members
required to be present in any union which has been duly registered.
This Section mandates that a trade union which has been registered
must at all times continue to have not less than 10% or one hundred
of the workers, whichever is less, subject to a minimum of seven,
engaged or utilised in an institution or trade with which it’s
connected.
• Section 10 : cancellation of registration
The registrar, according to Section 10 of the Act, has the power to
withdraw or cancel the registration certificate of any union in any of
the following conditions:
• On an application made by the trade union seeking to be
verified in such manner as may be prescribed;
• If the registrar is satisfied with the fact that the trade
union has obtained the certificate by means of fraud or
deceit;
• If the trade union has ceased to exist;
• If the trade union has wilfully and after submitting a
notice to the Registrar, contravened any provision of the
Act or has been continuing with any rule which is in
contravention with the provisions of the Act;
• If any union has rescinded any rule provided under
Section 6 of the Act.
In the case of Tata Electric Companies Officer’s Guild v. Registrar of
Trade Unions (1994), the Bombay High Court ruled that wilful
disregard of the notification is a requirement for the registrar to
cancel the registration. The registrar cannot cancel the registration
on the grounds that the account statement was not filed earlier if the
trade union provides the account statement after receiving
notification from the registrar.
Where a 2-month show cause notice was not sent by the registrar to
the changed address of the union, it was held by the Bombay High
Court in Bombay Fire Fighters Service Union v. Registrar of Trade
Unions, Bombay (2003), that the registrar did not comply with the
mandatory provisions of Section 10 and quashed the order of
cancellation.
• Section 11 : appeals
According to Section 11 of the Act, any union which is
aggrieved by a refusal to register or a withdrawal of registration
made by the registrar can file an appeal:
In any High Court, if the head office of the trade union is
located in any of the presidency towns;
In any labour court or industrial tribunal, if the trade union is
located in such a place over which the labour court or the trade
union has jurisdiction;
If the head office of the trade union is situated in any other
location, an appeal can be filed in any court which is not
inferior to the Court of an additional or assistant has chosen a
principal Civil Court of original jurisdiction.
• Section 12 : registered office
Section 12 of the Act lays down that all communications and
notices to any trade union must be addressed to its registered
office. If a trade union changes the address of its registered
office, it must inform the registrar within the period of fourteen
days in writing, and the registrar shall record the changed
address in the register mentioned under Section 8 of the Act.
• Section 13 : incorporation of registered trade union
Section 13 of the Act states that every trade union which is
registered according to the provisions of the Act shall:
Be corporate by the name under which it is registered.
Have perpetual succession and a common seal.
Power to contract and hold and acquire any movable and
immovable property.
By the said name can sue and be sued

• Rights and liabilities of registered trade

unions:-
Sections 15 to 28 elucidate the rights which a registered trade
union has and also the liabilities which can be imposed against
them.

• Section 15 : objects on which general funds may be spent

( Trade union Funds s.15& 16) :
Section 15 of the Act lays down the activities on which a
registered trade union can spend its funds. These activities
include:
Salaries are to be given to the office-bearers.
The cost incurred for the administration of the trade union.
Compensation to the workers due to any loss arising out of any
trade dispute.
Expenses incurred in the welfare activities of the workers.
Benefits are conferred to the workers in case of
unemployment, disability, or death.
The cost incurred in bringing or defending any legal suit.
Publishing materials with the aim of spreading awareness
amongst the workers.
Education of the workers or their dependents.
Making provisions for medical treatment of the workers.
Taking insurance policies for the welfare of the workers.
This Section also provides the reason for non-contribution to
the said fund and also that a contribution to the fund can not
be made as a criterion for admission into the union.

• Section 16 : constitution of a separate fund for political

purposes
Section 16 provides that a trade union, in order to promote the
civic and political interests of its members, can constitute a
separate fund from the contributions made separately for the
said purposes. No member of the union can be compelled to
contribute to the fund.
A legally recognised labour union may establish a separate fund
with the goal of advancing the civic and political objectives of
its members. A recognised trade union is not allowed to use its
general finances for its members’ political campaigns. The trade
union must establish a separate political fund for political
causes. Contributions to such a fund must be separately
collected. Some of them are as follows:-
The recovery of all costs incurred, directly or indirectly, by a
candidate or prospective candidate for election as a member of
any governmental body or local authority. The costs cover all
outlays in connection with his candidacy before, during, or after
the election.
Maintenance of any individual who serves on a local or
legislative authority.
The election of a candidate for any legislative body or municipal
authority, or the registration of voters.
The staging of political gatherings of any type or the
dissemination to trade union members of any political material
or papers

• Section 17 : criminal conspiracy in trade disputes

Section 17 of the Act states that no member of a trade union
can be held liable for criminal conspiracy mentioned under sub-
section 2 of Section 120B of the Indian Penal Code regarding
any agreement made between the members of the union in
order to promote the lawful interests of the trade union.

The office bearers of the registered trade unions are exempt

from penal punishment for criminal conspiracy, per Section 17
of the Trade Unions Act of 1926. An agreement between two or
more people to carry out an illegal act or a legitimate act
through an illegal method is referred to as a conspiracy in
English law.
Criminal conspiracy is defined in Section 120-A of the Indian
Penal Code of 1860 as follows:

When two or more people agree to do something or make it

happen
• A prohibited act,
• An Act that is not committed via unlawful methods; such
as a contract is referred to as a criminal conspiracy;
The Trade Union Act of 1926 grants registered trade unions
immunity. Nevertheless, this immunity is only applicable with
regard to the legal agreements made by trade union members
for the promotion of legitimate trade union purposes. The right
to call for a strike and persuade members is one of the rights
granted to registered trade unions in the stimulation of their
industrial conflicts. All acts that give rise to civil litigation are
considered illegal acts. For instance, two men who conspire to
get workers to violate their employment contracts are guilty of
a crime. However, Section 17 safeguards a trade unionist from
a crime if the arrangement they have entered into is not an
agreement to conduct an offence.

In the case of West India Steel Company Ltd. V. Azeez (1988), a

trade union representative protested against the delegation of
a worker to another sector by blocking or stopping work inside
the factory for five hours. It was decided that a worker in a
factory had to obey the directives issued by his superiors. A
trade union leader is not exempt from following the rules.
There is no legal authority for a trade union official or any other
employee to share managerial responsibilities.

• Section 18 : immunity from civil suits in certain cases

Section 18 of the Act immunises the members of trade unions
from civil or tortious liabilities arising out of any act done in
furtherance or contemplation of any trade dispute.

For example, in general, a person is subject to tortious liability

for inducing any person to breach a contract. But, the trade
unions and its members are immune from such liabilities
provided such inducement is in contemplation or furtherance
of any trade disputes. Further, the inducement should be awful
and should not involve any aspect of violence, threat, or any
other illegal activity.
Any authorised officer or member of a registered trade union is
eligible for this immunity. No civil action may be brought
against them for conduct related to a trade dispute on the
grounds that it encourages another person to breach an
employment agreement; or interferes with another person’s
trade, business, or employment.
Furthermore, the incentive should be made via legal techniques
that are not against the legislation of the state. There is no
protection from physical harm, verbal abuse, or other illegal
tactics.

The Kerala High Court ruled in the case of P. Mukundan and

Ors. V. Mohan Kandy Pavithran (1991) that a strike by itself is
not a legally actionable offence. Furthermore, it was
determined that the provisions of Section 18 shield the trade
union, its officers, and its members from legal actions related
to the workmen’s strike.

In the landmark decision, Rohtas Industries Staff Union v the

State of Bihar (1962) by the Patna High Court, it was decided
that employers did not have the right to sue an employee who
participated in an illegal strike and subsequently lost business
and output.
In another case, Simpson & Group Companies Workers & Staff
Union v. Amco Batteries Ltd. (1990) by the Karnataka High
Court, the Court relied on the judgement in Chandrana Bros. &
Others v. Venkata Rao (1976) to observe that workers’
protection under Section 18 of the Trade Unions Act is
unaffected by “strike” or “lock-out” situations and remains
unchanged. In both circumstances, the consideration and the
principle are similar. Physically impeding the movement of
management staff, contractors, goods, or trucks transporting
raw materials is neither a trade union right nor a basic freedom
protected by Article 19 of the Constitution. Section 18
immunity cannot be invoked for such actions. Picketing is a
highly undefined right that only extends to other people’s
freedom of movement. The only acceptable means of
persuasion are vocal and visual; physical interference with
people or objects is not permitted

• Section 19 : enforceability of agreement

According to Section 25 of the Indian Contract Act of 1872, any
agreement in restraint of trade is void. But under Section 19 of
the Trade Unions Act, 1926, any agreement between the
members of a registered trade union in restraint of trade
activities is neither void nor voidable. However, such a right is
available only to registered trade unions, as unregistered trade
unions have to follow the general contract law.

• Section 21 : rights of minors to membership of trade

union
Section 21 provides that a person who is above 15 years of age
can be a member of any trade union, and if he becomes a
member, he can enjoy all the rights conferred upon the
members of the trade union, subject to the conditions laid
down by the trade union of which he wants to be a member.

• Section 23 : change of name

Section 23 states that any registered union is free to change its
name provided it does so with the consent of not less than
2/3rd of its members and subject to the fulfilment of the
conditions laid down in Section 25 of the Act.

• Section 24 : amalgamation of trade unions

Section 24 says that any two or more registered trade unions
may become amalgamated together into one trade union with
or without dissolution or division of the funds of such trade
unions or either or any of them, provided that votes of at least
one half of the members of each trade union are recorded and
at least 60% of the votes of each trade union are in favor of the
proposal.
The notice of such amalgamation, signed by the secretary and
seven members of each of the trade unions, should be sent to
the registrar of the state where the head office of the
amalgamated trade union is to be located. If the registrar is
satisfied that all the provisions of this act have been complied
with and the trade union formed thereby is entitled to
registration under section 6, he will register the new trade
union under section 8 and the amalgamation will take effect
from the date of registration.
• Section 25 : notice of change of name or amalgamation
Section 25 of the Act provides that:

A notice in writing of every change of name and of every

amalgamation which is duly signed by the Secretary and by
seven members of the Trade Union changing its name, and, in
the case of an amalgamation, by the Secretary and by seven
members of each and every Trade Union which are a party
thereto, should be sent to the Registrar.
If the Registrar feels that the proposed name is identical to the
name of any other existing Trade Union or, it so nearly
resembles such name as it is likely to deceive the public or the
members of either Trade Union, the Registrar may refuse to
register the change of name.
If the Registrar of the State in which the head office of the
amalgamated Trade Union is situated is satisfied that the
provisions of this Act have complied with the amalgamation
shall be given effect from the date of such registration.
• Section 27 : dissolution
Section 27 of the Act talks about the dissolution of a firm as
follows:

If a registered trade union has been dissolved, a notice of such

dissolution which must be signed by seven members and by the
Secretary of the Trade Union should be served to the registrar
within 14 days of such dissolution and if the registrar is satisfied
that the dissolution has been effected in accordance with the
rules laid down by the trade union may register the dissolution.
Where a union has been dissolved but its rules do not lay down
the way in which the fund is to be distributed after its
dissolution, the registrar may distribute the funds in any
prescribed manner.

• Objectives and functions of a trade union are

as :-

:1.To safeguard workers against all sorts of exploitation by the

employers, byunion leaders and by political parties.
2.To protect workers from the atrocities and unfair practices of
the management.
3.To ensure healthy, safe and conducive working conditions,
and adequateconditions of work.
4.To exert pressure for enhancement of rewards associated
with the work onlyafter making a realistic assessment of its
practical implications.
5.To ensure a desirable standard to living by providing various
types of socialservice – health, housing, educational,
recreational, cooperative, etc. And bywidening and
consolidating the social security measures.
6.To guarantee a fair and square deal and social security
measures.
7.To remove the dissatisfaction and redress the grievances and
complaints of workers.
8.To encourage worker’s participation in the management of
industrialorganization and trade union, and to foster labour-
management cooperation.
9.To make the workers conscious of their rights and duties.
10.To impress upon works the need to exercise restraint in the
use of rights andto enforce them after realistically ascertaining
their practical implications.
11.To stress the significance of settling disputes through
negotiation, jointconsultation and voluntary arbitration.
12.The raise the status of trade union members in the industrial
organization andin the society at large.

CHAPTER NO.2

• PROBLEMS:-
*Multiplicity of unions:-
Multiple unionism both at the plant and industry
levels pose a serious threat to industrial peace and
harmony in India. The situation of multiple unions
is said to prevail when two or more unions in the
same plant or industry try to assert rival claims
over each other and function with overlapping
jurisdiction. The multiple unions exist due to the
existence of craft unions, formations of two or
more unions in the industry. Multiple unionism is
not a phenomenon unique to India. It exists even
in advance countries like UK and USA. Multiple
unionism affects the industrial relations system
both positively and negatively. It is sometimes
desirable for the healthy and democratic health of
labour movement. It encourages a healthy
competition and acts as a check to the adoption of
undemocratic practice, authoritative structure and
autocratic leadership. However, the negative
impacts of multiple unions dominate the positive
impacts. The nature of competition tends to
convert itself into a sense of unfair competition
resulting in inter-union rivalry. The rivalry destroys
the feeling of mutual trust and cooperation among
leadership. It is a major cause for weakening the
Trade Union Movement in India. Multiple
unionism also results in small size of the unions,
poor finances, etc.
*Intra- union & Inter union Rivalry:-
The state of rivalry between two groups of the
same union is said to be inter union rivalry . The
existence of several unions is a result of intra- and
inter-union rivalries. It happens often when one
union tries to defeat another, even at the cost of
the interests of the labour movement. When
separate unions adhere to conflicting political
views or when they are governed by political
parties that disagree with one another, inter-union
rivalry can get quite heated. These rivalries often
impair the efficacy of collective bargaining and
cause instability in the workplace. Intra-union
conflicts may sometimes become problematic. The
reasons of intra-union disputes include member
personal ambitions,personality clashes,personal
rivelries etc.

*Over politicisation:-
Trade unionism in India is plagued by a significant
issue called politicisation. The largest trade unions
in India, such as the United Trade Union Congress
(UTUC), the Centre of Indian Trade Unions (CITU),
 and the Indian National Trade Union Congress
(INTUC), all have political ties. Each political party
does attempt to form its own union. Political
rivalry are thus extended to trade unions. Political
rivalry and party divisions may have an effect on
the union as well. Political parties often use trade
unions as instruments in their campaigns as a
result of politicisation of these organisations.
*Outside Leadership:
It is true that outside leadership had a key role in the
early development of trade unionism in India. Such
figures were often committed to the cause of labour in
the past. But it seems like things are different now. It
seems that many outside leaders use trade unions as a
method to further their own interests nowadays.
Numerous issues, including inter-union rivalry,
misinformation, and abuse of the trade union
movement, are brought on by outside leadership.
* CLOSED SHOP AND UNION SHOP:-
Closed shop, in union-management relations, is an
arrangement whereby an employer agrees to hire and
retain in employment only persons who are members
in good standing of the trade union. Such an
agreement is arranged according to the terms of a
labour contract. The employees must remain members
of the union at all times to remain employed. The
union members are requires them to secure and
maintain union membership as a condition of
employment.
Union” Shops: In this the employers are free to hire
non-union members, but union membership is
required within a specified period of type (often 30
days) as a condition of continued employment It
requires employees to belong to or pay dues to the
union as a condition of retaining employment.
• RECOGNITION OF UNIONS :-

• .There were no provisions for recognition of

trade unions until 1947.The law relating to
recognition of T.U in India was incorporated in
chapter 3 -A from sec.28 -A to sec.28-i by an
ammendment of the Indian T.U Act 1926 in
the year 1947 sec.28-A deals with the
definition of “The Appropriate Government”
sec 28-B makes provision for the appointment
, constitution,powers and procedures of
Labour courts ,sec.28-c to 28-i deals with the
law relating to recognition of T.U.
 TYPES OF RECOGNITION:
A trade/labor union is deemed to be recognized when
an employer agrees to negotiate with the union on
matters of pay and working conditions for the workers
represented by the union.Recognition may be
voluntary or statutory.
1 .Voluntary trade union recognition:
The most common way a union can gain recognition
for collective bargaining purposes is by the employer
simply agreeing to recognise it voluntarily.
In practice this means the union becomes recognised
by the employer without using any legal procedures.
2.Statutory trade union recognition:
If an employer and trade union find they are unable to
come to a voluntary recognition agreement, a trade
union can make an application for statutory
recognition. This only applies where the employer,
together with any associated employers, employs 21 or
more workers.( On book pg.no312)
• COLLECTIVE BARGAINING:-
The term Collective Bargaining was first coined by Mr
Sydney Webb in 1897. Collective bargaining can also be
referred as Bi-partile Settlement as two parties ie
employer and employee are involved. The main aim of
this method is to reach at some settlement which is
acceptable to both the parties involved in dispute. The
process of collective bargaining was introduced late in
India as trade unions were formed in 20th century. It
means bargaining done by an association or union of
workmen to settle their terms and negotiate the terms
and demands with employer for the workmen. It is
necessary for workmen as they are in weaker position
as compared to the employer and have to accept offer
of employer.
The main goal of collective bargaining is to come up
with an agreement through a written contract.
Collective bargaining deals with the issues which
include working conditions, salaries and compensation,
working hours, and benefits. There are different types
of collective bargaining- composite, concessionary,
distributive, integrative, and productivity bargaining.
• Subject Matter of Collective Bargaining
The subject matter of collective bargaining covers
making a contract between workers and employers,
execution of the contract.
The other issues covered in the collective bargaining
are as follows-
Recognition of union or unions, Wages and allowances.
Hours of work, leave and festival holidays.
Bonus and profit sharing schemes, standard labour
force.
Seniority, rationalization and the issues relating to the
fixation of workloads are also included in subject
matter.
The programmes of planning and development.
Issues relating to retrenchment and lay off.
Provident fund, gratuity and other retirement benefit
and incentive systems.
• Characteristics of Collective Bargaining :-
The main characteristics of collective bargaining are:
1.Collective Process: Another feature is it is a collective
process. Delegates participate on behalf of the
employer and trade union represent the employees
Both of the party sit together and reach at an
acceptable conclusion.
2.Continuous Process: The collective bargaining
process is continuous one, it goes on for 365 days of
the year. It does not end with an agreement and does
not start with negotiations. The process includes
application of contract and administration also. The
bargaining goes on day to day under the rules
established by labour agreements. It provides
machinery for continuing relationship between trade
unions and management.
3.Flexible and Mobile: The process is very flexible and
there is no specific rule for reaching at the conclusion.
There is more scope for compromise. Give and take
policy also works before reaching at the conclusion.
4.Bipartite Process: The process involves two parties.
There is no intervention of third party. Both the parties
employer and employees collectively take some
decision. It is a two way process.
5.Dynamic: Collective bargaining is a dynamic process
because the way by which conclusion is reached keeps
on changing every time. It is scientific and factual
process.
6.Industrial Democracy: The collective bargaining is
based on principal of industrial democracy. The trade
union represents the workers in negotiations with the
employer or employers. It is a joint effort of helping
the workers in matters which affect labour.
• Advantages of Collective Bargaining
The advantages of collective bargaining are –
*Enhance worker’s quality of life: It helps workers in
improving their quality life of life. The main focus is on
improving safety and working conditions of employees.
Collective bargaining leads to increase in pay level of
workers and other types of benefits. Hence the
workers enjoy higher quality of life. The collective
bargaining agreement will lead the workers to enjoy a
higher overall quality of life.
*Offer security and stability: It provides employees
security of work tenure and they need not worry about
their wrongful termination. They have a team of
representatives and strong support system who
represent them and fight for the rights of employees.
*Give workers a larger voice: In case of an individual
worker, he is unable to negotiate with the employer
and fulfil his demands regarding work conditions.
Whereas, collective bargaining provides strength to
workers by binding them together into a large group.
*Prevent employees strike: Another advantage of
Collective bargaining is it helps to resolve the dispute
between employer and employees. It avoids the
disputes between the employer and employees which
often leads to strike.
*It is a transparent process: All the discussions are
kept in written form and are open to all for reference.
Whatever is decided between the parties can be easily
known.
 • TYPES OF COLLECTIVE BARGAINING:-
*Integrative Bargaining:-
Integrative bargaining is a process where both sides
aim to benefit, creating a ‘win-win’ situation. Both
parties bring together a list of demands and an
agreement is reached that benefits both sides.
This process involves both parties considering the
others’ point of view, needs, wants, fears, and
concerns. As a result, both parties gain or lose by the
same amount. For example, a union may advocate for
greater staff training, which may cost the business
more initially but result in greater productivity in the
long run.
*Productivity Bargaining:-
This type of bargaining revolves around compensation
and the productivity of employees. Labor union leaders
often use higher salaries and compensation as a way to
boost employee productivity, which leads to higher
profits and value for the employer. For this kind of
bargaining to work, both parties need to agree to
financial terms in order to increase productivity.
*Distributive Bargaining:-
This process is characterized as benefiting one party
financially at the expense of the other. This can come
through increased bonuses, salaries, or any other
financial benefits. Distributive bargaining normally
favors workers over employers.
*Concessionary Bargaining:-
As its name implies, concessionary bargaining focuses
on union leaders making concessions in exchange for
job security. This is common during an economic
downturn or a recession. Union leaders may agree to
give up certain benefits to guarantee the survival of the
employee pool and, ultimately, of the business.
*Composite Bargaining:-
Composite bargaining has nothing to do with
compensation. Instead, it focuses on other issues, such
as working conditions, job security, and other
corporate policies. These may include hiring and firing
practices as well as workplace discipline. The goal of
composite bargaining is to come up with a suitable
agreement leading to a lasting and harmonious
relationship between employers and their employees.
• THEORITICAL FOUNDATIONS OF STATE
REGULATIONS OF INDUSTRIAL RELATION:-
Industrial relations imply the relation between both
employer and employees during the period of
employment in an industrial organisation. However,
the concept of industrial relations has a broader
meaning. In a broader sense, the term industrial
relations refers to the relation between various unions,
state and union, and between employers and
government. Relations of all those associated with the
industry may be known as industrial relations.
According to the International Labour Organisation
(ILO), industrial relations deals with relationships
between either state and employers and workers
organisations or the relationship between the
occupation organisation themselves.
The term industrial relations comprises two words, i.e.
‘industry’ and ‘relations’. The term ‘industry’ refers to
any productive activity in the organisation in which the
employees are engaged. On the other hand, the term
‘relations’ refers to the relationship, which exists
within the industry between the management and the
employees. The relationship between management
and employees within the organisation within the
organisational settings is defined by industrial
relations. Industrial relations emerge directly or
indirectly from management-trade union relationships.
• Characteristics of Industrial Relation
Following are the significant features of industrial
relations:
Industrial relations are the result of employment
relationships in industrial enterprises.
Industrial relations introduced the concept and
method of balancing and cooperating.
Industrial relations formulate rules and regulations to
maintain harmonious relations.
The intervention of the Government to shape the
industrial relation is made through laws, agreements,
rules, charters, etc.
Industrial relations incorporate both individual
relations and collective relations.
• Objectives Of Industrial Relations
Here are some objectives of Industrial Relations:
*Maintain industrial democracy based on workforce
participation in management and profits of industry.
*Ensure employee participation in company
management by giving them a voice in policy
formulation and decision-making.
*Develop an effective communication channel.
*Protect the interests of both employees and
management among all segments of an industry by
ensuring good mutual understanding and respect.
*Improve living and working conditions for employees
to maintain industrial peace.
*Bring government authority over the industrial units
to help with operations and protect the employees’
livelihoods.
*To establish industrial democracy.
*To avoid industrial disputes.
*To raise the production capacity.
*To minimise the labour turnover rate and
absenteeism.
*To safeguard the workers economic and social
interests.
*To contribute to the economic development of the
country through productivity.
*To establish a full employment situation.
*To minimise strikes, lockout, Heroes, etc., by
providing good working conditions and fair wages to
the workers.
• Approaches To Industrial Relations
*Psychological approach:-
This approach implies that labour and management
have conflicts ingrained in their perception and
attitudes. Individuality causes differences in the
perceptions of the parties. Conflicts arise when parties
interpret each other’s behaviour negatively. The
labour’s and management’s different perspectives and
interpretations of the situation create issues in
Industrial Relations.
*Sociological approach:-
Since the industry is an integral part of society, various
sociological factors, including norms, values, customs
and status symbols, influence the relationships
between the parties. The social effects of
industrialisation, such as social mobility and migration,
may cause various social issues, such as family
disintegration, stress, criminality and social and
personal disturbance. This impacts industry personnel
efficiency and productivity, impacting Industrial
Relations.
*Systems Approach:-
This approach was developed by John Dunlop .It
focuses on participation in the process, Environmental
forces and output. It further studies the interrelation
between among different participants of industrial
relation system. According to the systems approach, it
is hard to address a single element or phenomenon
without considering its interaction with other
elements. This implies that there is always an
interaction between the four fundamental elements,
consisting of input, transformation, output and
feedback.
*Socio-ethical approach:-
Along with a sociological basis, this approach to
Industrial Relations focuses on its ethical implications.
It is important for industry personnel to understand
their responsibilities to maintain good Industrial
Relations. They can contribute to the stated task
through cooperation and understanding each other’s
situations.
• What is the Importance of Industrial Relations?
*Promotes Democracy: Industrial relations means
employing collective bargaining to resolve issues faced
by workers. This collective bargaining is generally
employed through cooperation and mutual agreement
amongst all the affected parties, i.e., democracy,
management, and employees unions. This enables an
organisation to establish industrial democracy, which
eventually motivates the workers to perform their best
to the growth and prosperity of the organisation.
*High Morale: Good industrial relations enhance the
morale of the employees and motivate the workers to
work more efficiently.
*Avoid Conflicts Between Management And Union:
Industrial relations minimise issues Between unions
and management. This is because industrial relations
incorporate setting up machinery to resolve issues
faced by management and employees through mutual
agreement to which both these parties are bound. This
results in ignoring any unfair practices that could lead
to major conflicts between employers and trade
unions.
*Minimises Wastage: Satisfactory Industrial relations
are maintained on the basis of co-operation and
recognition of each other in the department. It helps to
minimise wastage of material, manpower, and costs.
*Economic Growth And Development: Good and
harmonious industrial relations result in increased
efficiency and hence prosperity, which in turn minimise
turnover and other tangible benefits to the
organisation. This promotes economic growth and
development.
• Social justice
The principle of social justice essentially states that all
social groups must be treated the same, no matter
what. It aims to remove social inequality, as it can be
clearly seen that certain groups have been subject to
social disability in terms of employment or labour. It
aims to provide equal employment opportunity to all
regardless of social status of a person. Social justice is
very crucial to maintaining sustainable peace as well as
encouraging sustainable economic growth.The labour
laws, in general, pave the way for good conditions of
service, and it includes welfare benefits such as
retrenchment benefits, employees’ provident fund
scheme, medical benefits and compensation etc.There
are various laws to protect the rights of labourers in
India
The Maine objectives of social justice are:-
1.To ensure that rule of law prevails in society
2 .To guarantee equality of opportunity .
3.To provide special opportunities to weaker and
vulnerable sections.
4.To ensure equality of outcome.
- Adoption of Social justice measures in India has been
done through the implementation of Acts like:
*The Workmen’s Compensation Act, 1923.
The employer must pay compensation for an accident
suffered by an employee during the course of
employment and in accordance with the Act.
*The Trade Union Act, 1926.
*The Industrial Employment (Standing Orders) Act,
1946.
The Industrial Employment Act requires employers in
industrial establishments to clearly define the
conditions of employment by issuing standing orders
which are duly certified. These standing orders issued
under the Act deals with holidays, shifts, payment of
wages, leaves, termination etc.
*The Industrial Disputes Act, 1947.
*The Minimum Wages Act, 1948.
The Minimum Wages Act prescribes minimum wages
for all employees.
*The Factories Act, 1948.
*Maternity Benefits Act, 1961.
The Maternity Benefit Act essentially regulates the
employment of women before and after childbirth and
provides certain other benefits too.
• Labour Welfare –
Labour welfare relates to taking care of the well-being
of workers by employers, trade unions, governmental
and non-governmental institutions and agencies.
Welfare includes anything that is done for the comfort
and improvement of employees and is provided over
and above the wages.
Welfare helps in keeping the morale and motivation of
the employees high so as to retain the employees for
longer duration. Employee welfare includes monitoring
of working conditions, creation of industrial harmony
through infrastructure for health, industrial relations
and insurance against disease, accident and
unemployment for the workers and their families.
According to ILO, labour welfare can be defined as a
term, which is understood to include such services,
facilities, and amenities as may be established in or in
the vicinity of undertakings to enable the persons
employed in them to perform their work in healthy,
congenial surroundings and to provide them with
amenities conducive to good health and high morale.
Oxford dictionary- “Labour welfare is efforts to make
life worth living for workmen.”
• Aims and Objectives
Labour welfare aims at total development of workers
personality based on humanitarian grounds. It aims at
helping the needy, the poor and the most deserving
community. Major objective of labour welfare is to
minimize exploitation of workers. Management wants
efficient, productive, hardworking, sincere and law
abiding workmen, which can be attracted by providing
liberal welfare measures. Such measures also improve
industrial relations in the industry.
Objectives are to:.
(a) Provides social comfort to
employees.
(b) Support overall improvement of
employees.
(c) Provide financial support indirectly
to the employees.
(d) Contribute in developing sense of
responsibility and belongingness
among employees.
(e) Improve working conditions at the
workplace for employees.
(f) Maintain and retain the existing
workforce.
(g) Reduce rate of absenteeism from
work and labour turnover from job.
(h) Improve lives of employees
comfortable and happy.
(i) Improve productivity and efficiency
of employees at workplace.
(j) Provide healthy and proper working
conditions.
 (k) Ensure betterment of employees
and families and society as a whole.

• The prominent features of labour welfare are as

follows:
1. Addition to wages and salaries – Welfare measures
are undertaken in addition to regular wages and
other economic benefits provided to the workers
under legal provisions and collective bargaining.
2. Functions – Labour welfare programme includes
various services, facilities and amenities provided
to workers for improving their health, efficiency,
economic betterment and to enhance social status
of the employees.
3. Dynamic – Labour welfare is dynamic in nature. It
varies from country to country, region to region
and organisation to organisation. Labour welfare
activities depend upon the need of the workers,
their social status, and social class and so on.
4. Flexible – Labour welfare is a flexible and ever
changing concept as new welfare measures are
added from time to time to the existing measures.
The needs of work force changes with time and
the changing social environment.
5. Voluntary and/or mandatory – Some labour
welfare measures are provided by laws and
 mandatory, while some are voluntarily provided by
the organisation for betterment of the employees.
Welfare measures may be introduced by the
employers, government, employees or by any
social or charitable agency.
6. Purpose – The basic purpose of labour welfare is
to improve the social life as well as work life of the
work force.
• TYPES OF LABOUR WELFARE:-
(1) Intra-mural Facilities:
The facilities provided inside the factory are known as
intra-mural facilities. These facilities include activities
relating to minimisation of industrial fatigue, provision
of safety measures like fencing and covering of
machines, good layout of the plant and machinery,
sufficient lighting conditions, provision of first aid
appliances etc.
(2) Extra-mural Facilities:
Facilities offered to the workers outside the factory are
known as extra-mural facilities. They include better
housing accommodations, indoor and outdoor
recreation sports, educational facilities etc. The
provision of these facilities is voluntary. Earlier, due
attention was not given to the provision of extra-mural
facilities to the workers but now it is realised that
these facilities are very important for the general
welfare and upliftment of the workers.
(3) Statutory Facilities:
Under this category, welfare facilities are provided
according to the labour legislations passed by the
Government. The nature and coverage of these
facilities vary from country to country. Again these
facilities may be either intra-mural facilities or extra-
mural facilities. These facilities must be provided by all
the employers and cannot be ignored. Any
contravention of the statutory provisions shall render
the employer punishable under the Act concerned.
(4) Mutual Facilities:
These facilities are usually outside the scope of the
statutory facilities. These activities are voluntarily
undertaken by the workers themselves for their own
interest. As such the employer has no say in it.
(5) Voluntary
The facilities which are voluntarily provided by the
employers come under this category. Hence these are
not statutory. No doubt, the activities under this
category ultimately lead to increase in the efficiency of
workers.
• THEORIES OF LABOUR WELFARE :-
*The Policing Theory of Labour Welfare:
The policing theory is based on assumption that
Human Being is so much selfish and always tries
for own benefits whether on the cost of others
welfare. Any of the employers will not work for the
welfare of employees until he is forced to do so.
This theory is based on the contention that a
minimum standard of welfare is necessary for
workers.
The assumption on which the theory is based is
that without compulsion, supervision and fear of
punishment, no employer will provide even the
barest minimum of welfare facilities for workers
this theory is based on the assumption that man is
selfish and self-centered, and always tries to
achieve his own ends, even at the cost of the
welfare of others. This is based on the contention
that a minimum standard of welfare is necessary
for labourers.
According to this theory, owners and managers of
industrial undertakings get many opportunities for
exploitation of labour. Hence, the state has to
intervene to provide minimum standard of welfare
to the working class.
*The Religious Theory of Labour Welfare:
This is based on the concept that man is essentially
“a religious animal.” Even today, many acts of man
are related to religious sentiments and beliefs.
These religious feelings sometimes prompt an
employer to take up welfare activities in the
expectation of future emancipation either in this
life or after it. The theory views were an essentially
religious. Religious feelings are what sometimes
prompt employers to take up welfare activities in
the belief of benefits either in his life or in support
after life.
Any good work is considered an investment,
because both the benefactor and the beneficiary
are benefited by the good work done by the
benefactor. This theory does not take into
consideration that the workers are not
beneficiaries but rightful claimants to a part of the
gains derived by their labour.
*The Philanthropic Theory of Labour Welfare:
Philanthropy is the inclination to do or practice of
doing well to ones fellow men. Man is basically
self- centered and acts of these kinds stem from
personal motivation, when some employers take
compassion on their fellowmen, they may
undertake labor welfare measures for their
workers.
 This theory is based on man’s love for mankind.
Philanthropy means “Loving mankind.” Man is
believed to have an instinctive urge by which he
strives to remove the suffering of others and
promote their well-being. In fact, the labour
welfare movement began in the early years of the
industrial revolution with the support of
philanthropists.
• PRODUCTIVITY :-
Productivity is the efficiency of production of
goods or services expressed by some measure.
Measurements of productivity are often expressed
as a ratio of an aggregate output to a single input
or an aggregate input used in a production
process, i.e. output per unit of input, typically over
a specific period of time. It is defined as a mode to
ensure the efficiency of products that have been
used and the output the are giving in the
economy.
Productivity is a crucial factor in the production
performance of firms and nations. Increasing
national productivity can raise living standards
because more real income improves people’s
ability to purchase goods and services, enjoy
leisure, improve housing, and education and
contribute to social and environmental programs.
 Productivity growth can also help businesses to be
more profitable.
Labour productivity is a measure of labour output.
The productivity is measured in hourly terms.
Labour productivity measures the real Gross
Domestic Product (GDP) produced in an hour
through labour. Labour productivity is an essential
factor in the overall growth of a business.
The growth in labour productivity is measured on
the basis of change in economic output for a
labour hour over a defined period of time.
Growth in labour productivity or an increase in
consumption levels indicate an improvement in
the standards of living.With an increase in labour
productivity, more goods and services are
produced for an increased demand for consumer
goods and services. Labour productivity grows
with a positive interaction between investment in
human capital, new technologies, and physical
capital.
• PUBLIC INTEREST:-